274 the Strength of Monetary Forces FIGURE 27-6

27.4 The Strength of Monetary Forces FIGURE 27-6
-Refer to Figure 27-6.The famous debate from the 1950s and 1960s between Keynesians and Monetarists centred around the slopes of the money demand and investment demand curves.The Monetarists believed

A) the diagrams in part (ii) were more realistic than those in part (i) ,and therefore fiscal policy was a more effective method of stimulating aggregate demand than monetary policy.
B) the diagrams in part (ii) were more realistic than those in part (i) ,and therefore monetary policy was a more effective method of stimulating aggregate demand than fiscal policy.
C) the diagrams in part (i) were more realistic than those in part (ii) ,and therefore fiscal policy was a more effective method of stimulating aggregate demand than monetary policy.
D) the diagrams in part (i) were more realistic than those in part (ii) ,and therefore monetary policy was a more effective method of stimulating aggregate demand than fiscal policy.